Hello.

The crank shaft does two laps for every one lap of the distributor. If you rotate the motor by hand around to where the balancer says that you are at TDC the rotor could be pointing at the #1 spark plug hole in the distributor, or, it could be pointing at the #6 hole. Remove the #1 spark plug and rotate the motor by hand( actually, with a 15/16 socket wrench

) with your thumb plugging up the #1 spark plug hole. As the rotor approaches the # 1 spark plug hole in the distributor and the balancer approaches TDC, you should be having some pressure building up in the #1 cylinder.
However, even with the distributor in backwards, the motor will normally cough, sputter and backfire when you try to start it. If I was going to make a guess at what's going on here, the first guess would be that you have forgotten to attach either the ground wire from the distributor to the coil, or the coil wire that looks like a short spark plug wire isn't pushed in far enough. You obviously have plenty of power available if you've started melting wires ( which you'll need to replace ) so, there must be a break in the circuit somewhere. You will definitely be wanting to make sure that the oil pump drive shaft didn't fall down into the oil pan. If it did, you have two ways to go on that. Snatch the oil pan off, retrieve the drive shaft and reinstall it, or, buy a new one and leave the old drive shaft in the oil pan until you get around to snatching the oil pan off for some other reason down the road somewhere. I would recommend choice A) on that one. Hope that helps.
